Ruling expected today in Delphi bankruptcy case

NEW YORK (AP) -- The judge overseeing Delphi Corp.'s bankruptcy case is expected to rule Thursday on the auto supplier's plan to hand control of the company to its lenders and eventually end its nearly four-year stay in Chapter 11.

After an eight-hour-long court session Wednesday in which nearly all objections to Delphi's plan were either withdrawn or dismissed, U.S. Judge Robert Drain indicated that he will approve the plan.

"To me it seems like a valid exercise of business judgment," he said.

The judge is expected to rule on a remaining minor dispute Thursday morning. The hearing is set to reconvene at 10 a.m. EDT Thursday and include a closing presentation from Delphi's attorneys.

If the plan is approved it would pave the way for Delphi to soon emerge from bankruptcy protection. The company has set a target date of Aug. 31 and expects to be out of Chapter 11 by Sept. 30, Delphi attorney Jack Butler said.